@myst4au wrote:
There are also Title Loan shops in Delaware, where both title loans and payday loans are big business (especially near thge borders) due to the banking regulations and the fact that they are forbidden in surrounding states. The Title Loan requires that you leave the clear title to your car with the lender. You get the title back when you pay back the loan and interest. I am not going anywhere near that one, even for the $50 which I was offered.
@kethry24 wrote:
I'm pretty sure the Service Sleuth ones were where you write a post-dated check that included the cost of the loan. You only had to return and pay off the loan if you wanted to do another right away. Otherwise you just let them cash the check two weeks later.
@sandyf wrote:
I did several of these and would do more if they showed up. There was one a few months ago that was up to $60 but I decided to wait and see if it went higher..someone else snatched it.
For those who asked about working and getting a loan...I have a full time job but just told them I had a payment due I could not meet until the next pay period when I got my check. My loan was a payday loan so a max of two weeks. The interest, although a great huge percentage only worked out to about $30 for two weeks. Someone who needs to fix their car so they can get to work or some other story like that is willing to spend $30 rather than lose their job. They should not ask why you need the money so just have a back story ready if you feel it is needed.
And I also saw what seemed like the same deal from another company for $12. Although the job itself was easy, taking the time for getting everything together and having to make sure you returned the money on time is not a $12 job in my world.
@2stepps wrote:
@sandyf wrote:
worked out to about $30 for two weeks. Someone who needs to fix their car so they can get to work or some other story like that is willing to spend $30 rather than lose their job. They should not ask why you need the money so just have a back story ready if you feel it is needed.
And there is the reason that the payday loan business flourishes. The thing that gets some people is that they have to keep refinancing the loan they got in the first place. The internet is full of horror stories about borrowing $600.00 and having to pay back over $2000.00 I could probably do it my wife couldn't.
I totally agree that the rates that are charged are way too much and there should be a max rate set. Some states have begun to do that. I also agree that many people get stuck in these loans and end up paying more and more interest over time. But, i am a mystery shopper and this is not job able to change people's habits. We can all help by asking for legislation or changes on whatever our pet peeves are and working on these issues in our non mystery shopping lives. There are many out there who do not know how to handle money and get caught with student loans that get larger over time or with expensive dinners and clothing purchases way beyond their means and then they cannot pay the rent. We can only hope that the payday loan people are pointing out the interest rate when someone asks for a loan and they are also checking (via seeing a paycheck or some other evidence that the loanee can repay the loan) and warning that if the loan is not paid back the interest accrues. In that small way perhaps the mystery shoppers are helping to make sure at least these warnings happen. The thousands of percentage points charged on the loans have been prominently displayed on the wall when I have done these. So as long as the industry is here and thriving that is what I can do as a mystery shopper..for the rest of my life I can do whatever I feel might work to change the system.